How to Stay Smart, Competitive, and Profitable with Holiday Leasing
With the holiday season approaching, most property owners, investors, and brokers take time off for family and travel, but some find themselves dealing with an empty rental that still needs to be filled. For owners in the 1–14-unit space, typically those without full-time property management, the holidays can bring more stress than cheer when a vacancy pops up. Balancing the urge to “just get it rented” with the need to protect your investment can feel impossible.
I’m in the same boat myself. One of our 3-bedroom units recently became vacant, and even with years of experience and access to all the data and ordinances any landlord could need, I found myself tempted to drop the rent just to make the problem go away. But as our legacy counsel at ACI Apartments reminded me: lowering rent isn’t a fix, it can be a long-term setback.
The State of the San Diego Rental Market: 20,000+ Units and Growing
According to The San Diego Reader (Nov. 12, 2025), there are now over 20,000 active rentals across San Diego County, a record high and a reflection of the new reality: an oversupplied market with slower lease-ups. Renters have options again, and they’re becoming more selective, especially with new luxury buildings offering steep concessions like one or even two months free rent.
CoStar data confirms the trend: rents fell another 0.4% in October, marking the fifth straight month of declines and an average asking rent of $2,525 per month across the county. About 40% of landlords are now offering concessions, from free rent to “look-and-lease” specials (incentive for signing a lease with 24 hours of viewing). Even traditionally resilient submarkets like Downtown and UTC saw month-over-month losses nearing 1%. In short, the leverage has shifted to tenants and just as we head into the hardest time of year to fill a vacancy.
Why the Holidays Make Leasing Even Harder
Historically, the weeks between Thanksgiving and New Year’s are the slowest period for rental activity. Few families want to move during the holidays, and relocations for work or school typically pause until January. With over 20,000 listings already competing for attention, small owners are entering one of the most challenging holiday seasons in recent memory.
As CBS8 recently noted, despite San Diego’s reputation for limited housing, the region’s rental availability is at a decade high as new construction floods the market and households feel the squeeze of inflation. Luxury supply has surged, pulling renters upmarket and leaving many “mom and pop” units sitting vacant.
Lesson 1: Don’t Drop the Rent – Use Concessions Strategically
Lowering rent may seem like the easiest lever to pull, but it’s often the most damaging. A permanent rent reduction impacts long-term ROI, property value, and your next refinance or sale valuation. It also increases the risk of turnover once you eventually try to raise rent back up.
Instead, get creative with concessions:
Offer ½ off the first month’s rent or a free parking spot.
Include utilities or Wi-Fi for a limited time.
Provide flexible move-in dates or shorter lease options.
Lesson 2: Market Smarter, Not Harder
When demand slows, your marketing has to work harder:
Post on multiple platforms—Zillow, Apartments.com, HotPads, Facebook Marketplace, and yes, even Craigslist. It still draws renters who prefer direct landlord communication.
Refresh your listing photos and descriptions regularly. Add video tours to save time with viewings.
Be responsive and flexible with showing times. Evenings and weekends matter during this season.
This is also the time to highlight what tenants care about most right now:
Parking – Scarcity drives demand. It is the #1 most asked question when renting a unit.
Pet policy – Many renters will skip listings that don’t mention it.
Move-in costs – Instead of lowering deposits, offset them with temporary concessions.
Lesson 3: Stay Firm on Tenant Qualifications
With increased vacancy stress, it’s tempting to bend your criteria for “almost qualified” applicants. Don’t.
California’s tenant protections under AB 1482 and the costly eviction process (which can stretch over six months) make diligence essential. A tenant with weak income verification or poor history can cost far more than a few weeks of vacancy. If an applicant only meets 2.2x the rent when your standard is 2.5x or higher, remember that you’re not just filling space; you’re protecting an asset. I remind myself of this constantly, and it’s one of those lessons we all seem to relearn every time you want to fill a unit quickly.
Final Thoughts: Vigilance Over Vacancy
Even in an oversupplied market, quality tenants are still out there, they’re just moving slower, comparing more options, and expecting professionalism from private owners. The key this season isn’t desperation, it’s discipline.
Be diligent, creative, and transparent. Offer value through concessions, not discounts. Market across every channel you can handle and stay true to your standards.
Whether you’re managing one property or a small portfolio, protecting your property is still the best gift you can give yourself this holiday season.
Sources
CoStar Analytics, “San Diego Rents Dip Ahead of the Holidays”, Nov. 5, 2025
CBS8, “Paradise at a Price: San Diego Lures More Movers”, 2025
The San Diego Reader, “More Places to Rent in San Diego Than Ever”, Nov. 12, 2025
ACI Apartments, Q3 2025 San Diego Multifamily Market Report
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